Cash Flow Statement _CashFlowStatement_ A cash flow cash by fdjerue7eeu


									Cash Flow Statement (CashFlowStatement) A cash flow cash

 cash flow statement of cash

 1 Cash Flow Definition
 2 Cash Flow analysis
 3 series reported significant cash flow statement cash flow statement
 4 role
 5 cash flow deficiencies

  definition of the cash flow statement cash flow statement of financial Report one of
the three basic report, expressed in a fixed period (usually monthly or quarterly), the
one institution in cash (including bank deposits), eliminate the growth changes in
circumstances. The emergence of the cash flow statement, mainly to reflect the
various balance sheet items on the cash flow impact, and classified according to their
use as operating, investing and financing activities in three categories. Cash flow
statement can be used to analyze an organization in the short term do not have enough
cash to meet their expenses.
  cash flow statement is a display in the specified period (usually one month, quarter.
Mainly the annual reports of the year) in cash inflows and outflows of financial
reports. This report shows the balance sheet (BalanceSheet), and income statement
(IncomeStatement / ProfitandLossAccount) how they affect cash equivalents, and
according to the company's operating, investment and financing perspective analysis.
As an analytical tool, the main role is to determine the cash flow short-term viability
of the company, especially the ability to pay bills.
  business over the past emphasized the balance sheet and income statement are two
tables, with the expansion of business and the complexity of the financial information
needs of growing up, but many business interruption due to causes in the capital
turnover problem, gradually, enterprise funds reported cash flow trends may also be of
importance in many business operators as it will be necessary in the financial
  cash flow analysis
  cash flow statement is the basis for the preparation of cash basis, reflecting income
during a given period of cash and cash expenditure reports. The analysis of cash flow
statement, it is necessary to master the table structure and characteristics, to analyze
the internal structure, but also the income statement and assets of the balance sheet
combined with a comprehensive analysis, more balanced and objectively assess the
financial position and operational performance. Therefore, the analysis of cash flow
from the following aspects:
  1, cash flow and structural analysis of
  company's cash flow from operating activities generated cash flow, cash flow from
investing activities and financing activities Cash flows from three parts. Analysis of
cash flow and its structure, to understand the circumstances surrounding the business
and cash payments in cash form, evaluation of enterprises operating conditions, the
highest current capacity, financing capacity and financial strength.
  (a) operating activities Cash flow analysis.
  l, will be selling goods or rendering of services received in cash and purchase goods.
Receiving services to pay cash for comparison. Enterprises operating in the normal
balance of the purchase and sale of the two comparisons are meaningful. Ratio, which
meant that the sales profits of big business and Days Sales Outstanding good record is
  2, will be selling goods or rendering of services received in cash and total cash flows
from operating activities compared to sales of enterprise products can be a rough
indication of total cash inflow from operating activities Cash share of how much.
Than significant, indicating prominent main business companies, marketing is good.
  3, the current net cash flow from operating activities compared with the previous
period, the higher growth rate, indicating the better business growth.
  (b) investing activities Cash flow analysis. When the company expanded the size or
development of new profit growth point, requires a lot of cash, investment activities
could not be compensated in cash inflows outflows from investing activities Net cash
flow is negative, but effective if business investment will generate in the future net
inflow of cash to repay debt, and create income, enterprises will not have
debt-servicing difficulties. Therefore, the analysis of investment cash flows should be
combined with current business investment projects, not simply the net cash inflow or
net flow out on the advantages and disadvantages.
  (c) financing activities cash flow analysis. Generally speaking, fund-raising activities
net cash flow generated by the larger enterprises are facing greater pressure of debt
service, but if the net cash inflows mainly from the corporate absorption of equity
capital, then one will not only face; temporary debt pressure, but increased financial
strength. Therefore, in the analysis, can absorb the equity capital received in cash and
financing activities Cash inflow compared with the share proportion, indicating
enhanced corporate financial strength, financial risk reduction.
  (4) Components of cash flow. First, calculate the cash inflow from operating
activities, investing cash inflows and cash inflows accounted for the proportion of the
cash inflow to understand the main source of cash. In general, total cash inflow from
operating activities Cash inflow than the major companies operating in good
condition, low financial risk, cash flow structure is more reasonable. Second,
calculate the operating cash expenditures, cash expenditures in investing activities and
financing activities Cash outflow of cash expenses to the proportion, it can
specifically reflect the cash for what. In general, the proportion of cash expenditures
of enterprises, production and management of its normal cash expenditure structure is
more reasonable.
  2, comparative analysis of cash flow and profit and loss account profit and loss
  company must reflect the operating results during the important report, which
reveals the profits of the calculation process and the formation of profit. Evaluation of
corporate profits are seen as operating results and an important indicator of
profitability, but there are some flaws. As we all know, profit is revenue minus the
cost difference, and revenue and expense recognition and measurement on an accrual
basis, revenue realization principle widely used, cost matching principle, divided into
capital expenditure and revenue expenditure to the principle of carried out, including
too many accounting estimates. Although the accounting staff to follow when making
accounting estimates, and have some objective basis, but inevitably the use of
subjective judgments. Moreover, since the income and expenses are recognized on
their ownership, regardless of whether actually received or paid in cash, often to the
profit calculated on the basis of a level of profitability does not match its true
financial condition. Some companies book profits of large, seemingly impressive
results, while cash is living beyond their means, in serious difficulties; and some
enterprises have huge losses, but cash-rich, flow freely. Therefore, the only profit to
evaluate business performance and profitability is biased. If combined with the cash
flow statement of cash flow information provided by, particularly the net cash flow
from operating activities of the information, is more objective and comprehensive. In
fact, the net profit and cash flow are two companies from different angles to reflect
the performance indicators, the former may be called the accrual of profits, which can
be called a cash profit. Relationship, through cash flow revealed additional
information 2. Specific analysis, cash flow statement may be relevant indicators and
related indicators of the income statement compared to assess the quality of corporate
  (i) net cash flows from operating activities compared with net profit, to some extent
reflect the quality of corporate profits. That is, each company to achieve 1 per book
profit, the actual number of cash support, the higher the ratio, the higher the quality of
profits. However, this indicator only in normal business operations can not only
generate profits but also net cash flows when earnings were comparable, analysis of
this ratio makes sense. In order to net cash flows from operating activities calculated
along the same lines, net profit excluding investment gains and indicators should
financing costs.
  (b) the sale of goods and rendering of services received in cash compared with the
main business income, business sales can largely explain the situation and the
recovery of cash the quality of enterprise sales. Share of income is a significant
number, indicating an increase in sales after the assets to achieve cash conversion
speed and high quality.
  (c) of the share of profits and dividends or bond interest received to obtain cash and
return on investment compared to broadly reflect the quality of corporate investment
income book.
  3, the cash flow statement and balance sheet of the comparative analysis of
  corporate balance sheets to reflect the final statement of assets and liabilities, using
the cash flow statement of the relevant indicators and related indicators of the balance
sheet compared to more for the objective evaluation of the company's solvency.
Profitability and ability to pay.
  (1) solvency analysis
  liquidity ratio is the ratio of current assets to current liabilities, and liquidity is
reflected in one year or one operating cycle, cash assets, including a number of
liquidity is not strong, such as sluggish stock, it may not justify the receivables, and
costs are essentially prepaid expenses, pending loss and prepayments and other
current assets. Although the nature of the assets they have, but in fact does not change
again for the cash, no longer has the ability to pay debt. Moreover, structural
differences between different enterprises greater liquidity, asset quality vary, so only
the current ratio
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